Back

Mariano Velarde & Avelina Velarde vs CA, David Raymundo & George Raymundo

Spouses MARIANO Z. VELARDE and AVELINA D. VELARDE, petitioners, vs. COURT OF APPEALS, DAVID A. RAYMUNDO and GEORGE RAYMUNDO, respondents.

G.R. No. 108346 | 2001-07-11

D E C I S I O N

PANGANIBAN, J.:

A substantial breach of a reciprocal obligation, like failure to pay the price in the manner prescribed by the contract, entitles the injured party to rescind the obligation. Rescission abrogates the contract from its inception and requires a mutual restitution of benefits received.

The Case

Before us is a Petition for Review on Certiorari[1] questioning the Decision[2] of the Court of Appeals (CA) in CA-GR CV No. 32991 dated October 9, 1992, as well as its Resolution[3] dated December 29, 1992 denying petitioner's motion for reconsideration.[4]

The dispositive portion of the assailed Decision reads:

...